SOS its true or false

TRUE T-FALSE (F) STATEMENTS The IRS does not require the taxpayer to use the same method on the tax return that is used in prepa 1. ring financial statements. 2. Capital expenditures are expenditures that increase the company's 3. Ordinary repairs should be recognized when incurred as revenue 4. If the proceeds from the sale of a plant asset exceed its book value, a 5. A loss on disposal of a plant asset can only occur if the cash proceeds investment in productive facilities. expenditures. gain on disposal occurs. received from the asset sale are less than the asset's book value. 6. All plant assets (fixed assets) must be depreciated for accounting purposes. 7. Land improvements are generally charged to the Land account. Additions and improvements to a plant asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally expensed in the period incurred. 8 9. Capital expenditures are expenditures that increase the company's investment in productive facilities. 10. Natural resources include standing timber and underground deposits of oil, gas, and minerals. djunct Associate Professor- Raymond G. Hohman, Jr